Very simply, we fight for DB pensions because the benefits that they produce are a significant engine to growth in the U.S. In fact, in 2016, spending of public pension benefits generated $1.2 trillion in total economic output, supporting 7.5 million jobs across America. Importantly, this spending resulted in $202.6 billion in federal, state, and local tax revenue. The magnitude may be different, but multiemployer plans also generate significant economic activity leading to healthy tax revenue for federal and local entities.
The cavalier approach to pension reform by our august leaders will create economic hardship for not only the plan participants but the local economies in which they live. The proposed loan sum associated with the Butch Lewis Act (H.R. 397) legislation that passed the House in July is a drop in the bucket compared to the lost economic activity that will result. We already have a significant wealth gap in this country. Let’s not exacerbate an already awful situation.